Market Snapshot | April 3, 2024

Corn futures are mostly 2 to 3 cents higher at midmorning.

• Corn futures are mildly favoring the upside amid light corrective buying, though weakness in soybeans and soymeal is limiting buying.
• The ag attaché in China projects the country’s corn production will increase 2.4% to 296 MMT this year amid an expected increase in yields and slightly larger planted area. China’s corn imports are forecast to decline 3 MMT to 20 MMT in 2024-25.
• Brazil’s corn exports in April are projected at 25,000 MT in April, down from 166,552 MT in the same month a year ago, according to Anec.
• Weekly ethanol production averaged 1.073 million barrels per day (bpd) during the week ended March 29, up 19,000 bpd (1.8%) from the previous week and 7.0% above year-ago. Ethanol stocks rose 324,000 barrels to 26.416 million barrels.
• May corn is trading narrowly within Tuesday’s lower range, with initial support at the previous session low of $4.24 1/2, while resistance is at the 10-day moving average near $4.35.

Old-crop soybean futures are mostly 4 cents lower, while new-crop is pivoting around unchanged. Soymeal is around $3.00 lower. May soyoil is nearly 20 points higher.

• Nearby soybeans are favoring the downside for the sixth straight session as overhead technicals and meal weakness continue to weigh on prices.
• Brazil soy exports are projected to reach 10.65 MMT in April versus 14.05 MMT in the same month a year ago, while soymeal exports are expected at 2.31 MMT, up from 1.74 MMT in April 2023, according to Anec.
• EPA issued a notice detailing the final conditions for dicamba product usage after revoking their registration. The notice outlines an existing stocks order for XtendiMax®, Engenia® and Tavium® for over-the-top use on dicamba tolerant soybeans and cotton.
• Malaysian palm oil futures rose for the third straight session overnight, due to a shortage after a slowdown in production during Ramadan, topped with hot weather over the past few weeks.
• May soybeans are testing initial support at the previous session low of $11.68 3/4, with additional support at $11.63 1/2. Initial resistance is at the 5-day moving average just under $11.83.

Wheat futures are mostly 9 to 14 cents higher.

• Wheat futures have extended overnight price gains amid corrective buying.
• The ag attaché in China projects wheat production will rise 1% to 138 MMT on an expected rise in yields and steady planted area. Wheat imports are expected to remain steady at 10 MMT in 2024-25.
• Through the first nine months of the 2023-24 marketing year, Ukraine exported 35.4 MMT of grain, down 2.6 MMT (6.8%) from the same period last year. Ukraine’s ag ministry said it has exportable grain supplies of about 50 MMT for 2023-24.
• May SRW wheat extended below the 20-day day moving average of $5.45 in overnight trade but is currently trading above the 10-day moving average of $5.50 3/4, with additional resistance at $5.57 1/2. The 20-day moving average is backed by support at $5.38 1/4.

Live cattle and feeders are posting heavy losses at midmorning.

• Nearby live cattle are handing back Tuesday’s corrective gains but continue to trade within Monday’s wide range as technical pressure and looming caution hinder buying efforts.
• Slaughter volumes have been reduced as of late, with this marking the sixth week of at or near 600,000 head slaughter volumes as packers attempt to stabilize margins.
• Since peaking nearly two-weeks ago, wholesale beef values have been a near-daily retreat. Choice boxed beef continued to slide Tuesday, dropping another $1.58 to $304.16, while Select sunk $2.80 to $298.99. Movement totaled 125 loads.
• June live cattle are capped by resistance at the 100-day moving average of $176.28, while support lies at Monday’s low of $174.15.

Lean hog futures are posting strong gains at midsession.

• Deferred lean hog futures are sharply higher and have marked fresh contract highs.
• The CME lean hog index is up another 14 cents to $89.42 as of April 1.
• The pork cutout value rose 52 cents Tuesday to $97.13, led by a $4 gain in primal ribs. Movement totaled 243.9 loads.
• June lean hogs posted a fresh contract high at $105.725. Initial support lies near $103.81.